A study on risks of cross-border merger and acquisition of SOES in China based on PEST model

Abstract

Facts show that there are existing great risks in the course of M&A for SOEs, resulting in the low rate of success. In order to analyze the features of M&A conducted by SOEs in China, qualitative research method and inductive research method are applied. What is more, with the aid of the PEST model, some cases concerned, both successful and unsuccessful, are further delved into and many key risk factors in the course of M&A in the area of politics, economy, culture and technology are identified. All these are of great practical significance to the avoidance of decision errors and the further implementation of China's strategy “going global”.